there literally slew of companies who went in 1 year from mid size business to multi billion ARR.

And yeah, blah blah they burn money blah blah. Check Anthropic CEO interviews. He openly describe the balance problem : - cost of training a new model - newly built infra ratio of training vs inference - market adoption, that is despite extremely quick is not unlimited, since even market is not unlimited.

essentially it's a tricky balance, between you do not invest today you will loose tomorrow vs you invest too much and go bankrupt next year.